1. STRIPS is the acronym for 'Separate Trading of Registered Interest and Principal of Securities'. 2. These are basically "zero-coupon" securities where the investor receives a payment at maturity only. STRIPS allow investors to hold and trade the individual interest and principal components of eligible Government securities as separate securities of varying tenure. 3. They are popular with investors who want to receive a known payment on a specific future date and want to hold securities of desired maturity. 4. January 17, 1994 - Zero Coupon Bonds (ZCBs) *(not STRIPS)* were introduced for the first time. [^1] 1. There were four issuances of ZCBs between 1994 and October 7, 1996 (and none after that). 5. Oct 22, 2001 - [Report](RBI_Group-Committee_20011022_Report%20of%20the%20informal%20Group%20on%20STRIPS.pdf) of the informal Group on STRIPS was published 6. [May 22, 2002](RBI_Press%20Release_20020522_Working%20Group%20on%20Operational%20and%20Prudential%20Guidelines%20on%20STRIPS.pdf) - A working group was set up to suggest operational and prudential guidelines on STRIPS. 7. [Aug 14, 2002](RBI_Group-Committee_20020814_Report%20of%20the%20Working%20Group%20for%20Suggesting%20Operational%20and%20Prudential%20Guidelines%20on%20STRIPS%20(Separately%20Traded%20Registered%20Interest%20and%20Principal%20of%20Securities).pdf) - Report of the Working Group for Suggesting Operational and Prudential Guidelines on STRIPS (Separately Traded Registered Interest and Principal of Securities) was released. 8. April 21, 2009 - In the [Annual Policy Statement for the year 2009-10](RBI_MPS_20090421_FY09-10.pdf), Governor D. Subbarao announced STRIPS for central government securities would be introduced in the current financial year. 9. [October 16, 2009](RBI_Notification_20091016_Government%20Securities%20–%20Separate%20Trading%20of%20Registered%20Interest%20and%20Principal%20of%20Securities%20(STRIPS).pdf) - RBI notified terms and conditions for stripping/reconstitution of central Government securities. 10. [March 25, 2010](RBI_Notification_20100325_Guidelines%20on%20Stripping-Reconstitution%20of%20Government%20Securities.pdf) - RBI announced the introduction of STRIPS for central government dated securities in India effective from April 1, 2010. 1. Final [Operational guidelines](RBI_Notification_20100325_Guidelines%20on%20Stripping-Reconstitution%20of%20Government%20Securities_Detailed.pdf) were issued 2. To begin with, STRIPS were tradable only in the OTC market and such trades in STRIPS were required to be reported on NDS 11. April 1, 2010 - STRIPS were introduced 12. [May 3, 2018](RB_Notification_20180503_Guidelines%20on%20Stripping-Reconstitution%20of%20Government%20Securities.pdf) - RBI removed the restrictions on the securities eligible for Stripping/Reconstitution as well as the requirement of authorization of all requests for Stripping/Reconstitution by Primary Dealers (PDs). 13. June 2025 - RBI allowed STRIPS for SDLs. 14. [STRIPS](STRIPS.md) (Separate Trading of Registered Interest and Principal of Securities) - they are not issued in the primary auction, but traded in the secondary market. 1. [June 12, 2025](RBI_Notification_20250612_Stripping:Reconstitution%20in%20State%20Government%20Securities.pdf) - RBI introduced STRIPS for state government bonds called SDLs. 15. Request is placed on e-KUBER for stripping/reconstitution, and the new securities (zero-coupon bonds) are credited in the SGL account. 1. GAH/Demat account holders can place requests with their custodians (primary members of e-Kuber) who maintain CSGL on the behalf of their clients with RBI, and the custodians will then place the request with RBI on e-Kuber. 16. **Trading** 1. They are not issued in the primary auction 2. STRIPS are traded in the secondary market by institutions mainly through OTC deals (which are then reported to NDS-OM), and retail investors can access them via the RBI Retail Direct platform (which connects to the "NDS-OM Retail" segment).) 1. Large banks, pension funds, and insurance companies, primary dealers strip bonds for their own internal asset-liability management. They then hold some zero-coupon bonds to perfectly match their long-term liabilities, and may sell the remaining in the OTC market. 3. [List](https://rbi.org.in/scripts/financialmarketswatch.aspx) of Government of India STRIPS outstanding > [STRIPS in the Government Securities Market](RBI_Annual_Annual%20Report_2001.pdf#page=249&selection=10,0,11,42) in RBI's Annual Report of 2001 > [Box V.1-Separate Trading of Registered Interest and Principal of Securities (STRIPS) – Operational Guidelines](RBI_Annual%20Report_2009.pdf#page=259&selection=4,0,6,11) in RBI's Annual Report of 2009 ## Data Releases 1. [List](https://rbi.org.in/scripts/financialmarketswatch.aspx) of Government of India STRIPS outstanding ## Guidelines 1. [October 16, 2009](RBI_Notification_20100325_Guidelines%20on%20Stripping-Reconstitution%20of%20Government%20Securities_Detailed.pdf) - Operational guidelines were issued 2. [May 3, 2018](RBI_Notification_20180503_Guidelines%20on%20Stripping-Reconstitution%20of%20Government%20Securities.pdf) - Guidelines were partially modified ## References 1. RBI. (Aug 14, 2002). Report of the Working Group for Suggesting Operational and Prudential Guidelines on STRIPS (Separately Traded Registered Interest and Principal of Securities). [pdf](RBI_Group-Committee_20020814_Report%20of%20the%20Working%20Group%20for%20Suggesting%20Operational%20and%20Prudential%20Guidelines%20on%20STRIPS%20(Separately%20Traded%20Registered%20Interest%20and%20Principal%20of%20Securities).pdf) 2. RBI. (May 31, 2007). [Government Securities Market](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=503) [^1]: RBI. (May 31, 2007). [Government Securities Market](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=503)